“SEC Lawyers Resign Amid Judge’s Criticism of ‘False Statements and Abuse of Power’ in Cryptocurrency Lawsuit”

"SEC Lawyers Resign Amid Judge's Criticism of 'False Statements and Abuse of Power' in Cryptocurrency Lawsuit"

"SEC Lawyers Resign Amid Judge's Criticism of 'False Statements and Abuse of Power' in Cryptocurrency Lawsuit"

According to Bloomberg, two lawyers from the U.S. Securities and Exchange Commission (SEC) were recently accused by a judge of “serious abuse of power” in a lawsuit involving a cryptocurrency company, and subsequently resigned.

The report stated that the SEC had accused the cryptocurrency platform Debt Box of defrauding investors of at least $49 million in July last year, and claimed that the company was closing its bank accounts and transferring assets overseas. In response to the SEC’s request, Judge Robert Shelby froze the company’s assets and placed it under bankruptcy administration.

However, the court later found that the evidence presented by the SEC lawyers did not match the facts, and that Debt Box had no intention of transferring assets overseas. The SEC lawyers admitted their mistake and apologized, while the judge accused the SEC of making “significant false and misleading statements” and severely abusing the power granted by Congress.

In response to this incident, Gurbir Grewal, the head of SEC enforcement, apologized to the court in December last year for the actions of his department and promised further training for the agency’s enforcement officers. Furthermore, the report also pointed out that even if these two lawyers had not resigned, the SEC would proactively dismiss them.